Coal to the Rescue

As a result of the disruption to LNG shipments from the Persian Gulf, Asia, in particular, is moving to energy security through coal.

Coal is the giant on the block, and always has been.

https://tradingeconomics.com/commodity/coal/news/531727

Coal prices climbed above $140 per ton, hitting their highest levels since November 2024 as the escalating conflict in the Middle East and resulting disruptions significantly heightened global energy supply risks.

Oil also surged above $100 for the first time since 2022 after major Middle Eastern producers curtailed output as the Strait of Hormuz remains effectively shut.

In addition, the shutdown of Qatar’s massive liquefied natural gas production has boosted demand for fuel switching in the power sector.

Coal, Energy Security and Electricity Prices

Here's an excellent description of the link between coal and electricity prices. As the world has chased the Net Zero nonsense, the price of electricity has risen sharply.

Coal and China

Invest in a coal mine, it is the future:

China Electricity By Source

Net Zero Total Nonsense

Coal is far from dead...

The Energy Transition Delusion

Can the world copy Norway?

"There are liars and then there are battery salesmen"
 

Utopian Energy: Wasted 20 Years

Its never too late to learn:

https://www.realclearenergy.org/articles/2022/06/26/chasing_utopian_energy_how_i_wasted_20_years_of_my_life_839185.html

Utopian energy is an imagined form of energy that’s abundant, reliable, inexpensive, and also clean, renewable, and life-sustaining. But utopian energy is as much a fantasy as a utopian society. Seeking the fount of perfect energy allows us to pretend there aren’t real-world tradeoffs between, say, banning fossil fuels and helping people in impoverished nations or between using solar and wind power and conserving natural habitats. 

Labour Phasing Out Coal Boilers

Someone needs to sit the current New Zealand Labour government down and point out the facts surrounding having a developed economy. Such an economy needs coal fired boilers. All alternatives just don't measure up. In reality, not only are the alternatives a poor source of energy, but they're also not that environmentally friendly. Oh dear, NZ really is going to hell in a handcart.

Is Coal Dead?

Graphs for you to digest in answer to the question, is coal dead?

Change in Energy Consumption 2000-2012

Coal Consumption 1965-2011

Coal Production 1980-2010

Does this look like a dead resource to you? Far from it, coal underpins all industry and as the world advances coal production increases. The recent announcement putting Solid Energy under administration and the sale of the Vale coal mine on New South Wales for $1 are not a reflection of the industry's prospects.

The world's biggest producer, China, plans to increase its output, accounting for 60% of all coal output by 2019, that's only four years away...>>Link<< 

Why the drop in the coal price then? Two factors, a slight drop in demand from Europe and America, combined with an increase in supply from new mines in much cheaper areas. Mines in NZ, North America and Australia find it hard to compete, that's all. To keep up they'll have to employ new technology.

Solid Energy Enters Administration

A sad day for New Zealand as the state owned coal miner has hit the wall and appointed administrators.

What is the plan now? The first thing will be to have a meeting of creditors with a vote about whether they agree with the proposal to sell down the assets of the company over time. If they don't agree then I imagine the result will be liquidation.

>>Intelligent Article Here<<

Coal mining is viable and profitable. Imagine the industrialised world without coal. It's hard to imagine as it isn't possible. We need uninterrupted electricity, steel, cement, you name it.

A lot of the business units within Solid Energy are very good operations with high quality coal, and without government interference they'll do well, so selling them off to private operators is the best bet IMO. Stumbling along as they are now isn't an option.